Static stop loss on Daily or not? | Forex Factory

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Static stop loss on Daily or not?

  • #1
  • First Post: Apr 4, 2016 12:10pm Apr 4, 2016 12:10pm
Hi all.
I'm trading Daily chart only but i haven't a good Risk:Reward (maximum 1:1) because stop loss on Daily are bigger (150/200) with Atr confirm too.
I'm thinking if was a good idea use only static stop (50 or 100?). In this way i can have a good risk:reward (1:2 and 1:3) and i would respect the ancient "Cut your losses and let your winners run" :-)
What are your tips?
Thank you
  • #2
  • Apr 4, 2016 4:32pm Apr 4, 2016 4:32pm
SL shouldn't be a static value ... but defined at a technical level ... IMHO.
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Apr 5, 2016 5:53am Apr 5, 2016 5:53am
Much depends on the volatility. Much depends on the direction of the market. My opinion is that 100 is enough.
  • #4
  • Apr 5, 2016 6:49am Apr 5, 2016 6:49am
Quoting Lupo.Nero
Hi all. I'm trading Daily chart only but i haven't a good Risk:Reward (maximum 1:1) because stop loss on Daily are bigger (150/200) with Atr confirm too. I'm thinking if was a good idea use only static stop (50 or 100?). In this way i can have a good risk:reward (1:2 and 1:3) and i would respect the ancient "Cut your losses and let your winners run" :-) What are your tips? Thank you
The main thing to take profit was more than a stop-loss twice. If you want to put a smaller stop loss, then capture the moment on the market when the price changes direction (support and resistance) then the stop-loss levels will be determined by the level of support (resistance).
  • #5
  • Apr 6, 2016 12:41am Apr 6, 2016 12:41am
Other tips guys?
  • #6
  • Last Post: Apr 6, 2016 3:31am Apr 6, 2016 3:31am
Quoting Lupo.Nero
Hi all. I'm trading Daily chart only but i haven't a good Risk:Reward (maximum 1:1) because stop loss on Daily are bigger (150/200) with Atr confirm too. I'm thinking if was a good idea use only static stop (50 or 100?). In this way i can have a good risk:reward (1:2 and 1:3) and i would respect the ancient "Cut your losses and let your winners run" :-) What are your tips? Thank you
Hi, from my perspective and how I trade, it does not help you much if you stick to a static stop. Reason is very simple, depending on the timeframe you are trading, your stops can be very different. Again, depending on the different currency pairs you are trading, the average range of movement is different too; so in short, it is not the best idea to have a fixed stop loss.

Instead, you can consider using support and resistance area to decide your stop loss. If you risk to reward ratio is not decent, then skip that trade. There are more than sufficient opportunities for you to trade.

Having said that, it does not mean that a RR of less than 1:1 is a bad thing. Whether your strategy is profitable or not depends also on your hit rate and expectancy.
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